Small Business Administration (SBA) Loan Guide

Comerica is a National SBA Preferred Lender. Our SBA Loan Guide provides the details you need to make the right choices for your business.

SBA Loan Qualification Guidelines: Nearly 90% of all businesses are eligible for an SBA loan program

More funding for high-risk businesses.

Some businesses are considered a higher risk than others. The SBA levels the playing field for owners of these businesses, and makes it possible for them to get the funding they need to grow and prosper. If your business falls into a higher-risk category, the SBA lending program may make it possible to get financing that might otherwise be unavailable to you.

More funding for non-conventional assets.

SBA lending recognizes a broader range of assets, including non-conventional assets that would otherwise not qualify for collateralization. With SBA, you can get the funding for the parts of your business from which you know how to profit.

In general, to qualify for an SBA Loan, a business must be

• Owner-operated
• For-profit
• US-based business

SBA loans are available for

• Manufacturers
• Retailers
• Seasonal businesses
• General and trade construction companies
• Businesses that offer professional services such as doctors, dentists and veterinarians

Loan Uses and Term

SBA loans are meant to finance the growth and fall into the following categories

• Fixed Assets
  • For the purchase and use of capitalized assets (typically heavy machinery and specialized equipment) that can be used as collateral for the loan
  • Loan terms up to 20 years
• Working Capital
  • For needs like managing day-to-day cash flow, purchasing assets with short-term depreciation—computers, office equipment, or inventory loading
  • Loan terms can range from 0 to 10 years

Financial benefits of SBA Loans

The SBA permits loans with unique financial benefits.

• Less Money Down: You can better leverage your personal or investment capital and get more done with less up-front investment - with an SBA-guaranteed loan
• Longer Payback Terms: You can improve your cash flow with lower monthly payments and, when appropriate, fix a better match between loan terms and longer-term rates for capitalized-equipment or real-estate depreciation
• No Balloon Payment Required: You can establish terms that minimize your monthly payment without attaching a large payout at the end of the loan

Credit considerations

The SBA simply makes it easier to get the loan you want.  The general qualification standards for SBA lending are less stringent than many other types of loans, but the same issues are considered

• Acceptable personal and business credit history
• Pledge of available business assets and  — in some cases — personal assets to secure the loan

Loan fees

Getting an SBA loan is, for the most part, like getting any other loan. There are, however, a few special costs unique to SBA loans. Fortunately, they are nearly 100% financeable in the package, along with other customary fees that would be out-of-pocket for any other type of loan.

National SBA Preferred Lender